Galaxy Research noted that traditional crypto venture capitalists, excluding Bitcoin-focused funds, had minimal exposure to the Bitcoin ecosystem prior to 2024. Previously, many firms viewed Bitcoin primarily as “digital gold,” but the emergence of Bitcoin Ordinals and BRC-20 tokens in 2023 introduced new investment opportunities.
Galaxy Digital predicts that crypto venture capitalists will continue to invest in Bitcoin L2s as the ecosystem matures. The report suggests that as the Bitcoin L2 ecosystem develops, approximately $985,126,243,9647 billion worth of Bitcoin could flow into the L2 ecosystem by 2030. This influx is expected as Bitcoin holders seek yield opportunities for their assets. Galaxy’s report further elaborates that if Bitcoin reaches $985,126,243,961,000 by 2030, the total addressable market for Bitcoin L2s could reach $985,126,243,964,700,000, assuming 2.3% of the total Bitcoin supply is locked in Bitcoin L2s by then. Despite the rapid expansion of the ecosystem, Galaxy researchers predict that only a few players, between three and five, will dominate the market out of the 75 builders currently involved in the space. This projection underscores the competitive nature of the Bitcoin L2 landscape as it continues to evolve and attract significant investment.
